Taylor Wimpey has said the UK housing market remains "stable", as sales
continued to grow.

In a first-half trading update, the homebuilder said it expects to "continue to achieve improved performance period on period and to deliver full-year returns in 2012 that are ahead of our cost of capital and in line with our expectations".

Taylor Wimpey completed 5,083 homes (4,137 of which were private, 893 affordable and 53 joint-ventures) in the six months to July 1, up from 4,707 in the same period last year. The average private net reservation rate rose to 0.6 sales per outlet per week from 0.56, with the average selling price climbing to £175,000 from £168,000.

The company has increased its use of the Government's NewBuy scheme, which allows lenders - working in conjuction with housebuilders - to provide a 90pc to 95pc loan-to-value mortgage for buyers. Taylor Wimpey recorded 201 home reservations under this scheme since its launch in March, "representing around one-third of overall industry reservations".

A new range of energy-efficient properties completed last year also continues to sell well.

The total order book value stands at £960m, up from £932m in the same period last year, representing 5,720 homes. An 18pc increase in the value of the private order book has offset a fall in the value of the affordable order book.

Net debt is below £150m and the company has banked an exceptional tax and interest credit of £82.6m, which will be partially offset by an increase in its pension deficit.

The one blackspot in the trading update was from Spain, where "market conditions continue to be challenging" due to the ongoing economic crisis in the eurozone. Taylor Wimpey completed 13 homes in Spain in the first half, down from 30 in the first six months of 2011. Average selling prices fell by almost £100,000, to £172,000 from £266,000.

However, the order book value rose to £20m from £17m, representing 97 homes, an increase of 22.